Chinese steel mills caught between low margins and less cash liquidity in the open markets are turning to telegraphic transfers (TT) as the key form of payment, market sources told Fastmarkets this week.
"Smaller steel mills that do not have sufficient cash flow are accepting only telegraphic transfers for payments now, instead of letters of credit," a steel trader in east China told Fastmarkets on Tuesday February 2.The PBOC carried out the exercise in two tranches: 100 billion yuan...